27th May 2021 12:12
(Alliance News) - Renewables Infrastructure Group Ltd on Thursday said it plans to acquire a 50% stake in two onshore wind farms, known as the 'Twin Peaks', to be constructed in central Sweden.
Renewables Infrastructure has partnered with another London-based company, InfraRed European Infrastructure Income Fund 4 LP, who will acquire the remaining 50% interest in the project.
The purchase depends on both companies reaching a final agreement for the construction of the two wind farms. The company said that it expects the transaction to be finalised by July 2021.
Renewables Infrastructure has made GBP200 million available for the following three years to fund its current construction projects, including the 'Twin Peaks' projects. The company has currently drawn GBP135 million from its credit facility in total.
Construction is expected to commence in the third quarter of 2021 and is predicted to finish in early 2024.
The two sites, Ranasjo and Salsjo, are around 20 kilometres apart and share access to the local infrastructure and grid, with a combined capacity of 242 mega watts.
Both wind farms will use Siemens Gamesa 170 6.2 mega watt turbines, with 25 turbines placed at the Ranasjo and 14 at the Salsjo site. Siemens AG will provide observations and measurements services for the turbines for an agreed 30-year period.
The company predicts that once completed the two could produce enough renewable energy to power over 45,000 homes.
Once completed, the two wind farms are expected to represent 4.5% of the group's investment portfolio, with investments in Sweden making up around 15% of its portfolio. The company's exposure on its current construction projects is approximately 11% of its overall portfolio value.
Renewables Infrastructure shares were trading down 0.2% at 127.37 pence each in London on Thursday.
By Scarlett Butler; [email protected]
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